Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows

Lithium stocks like Core are exploring new lows today.

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It's been a rough day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Tuesday. After yesterday's sizeable drop, the ASX 200 is at it again today, with the index down another 0.84% at the time of writing. But let's talk about what's happening with Core Lithium Ltd (ASX: CXO) shares and some other ASX 200 lithium stocks.

Yesterday, Core Lithium shares closed at 18.5 cents each. But this morning, the ASX lithium share dropped as low as a flat 18 cents, a fall worth 2.7%. That's also a new 52-week low for Core Lithium stock, as well as a new three-year low.

But Core Lithium isn't the only ASX 200 lithium share exploring new depths today. The IGO Ltd (ASX: IGO) share price has also touched a new low point this Tuesday. IGO shares are currently down a chunky 1.02% at $6.81 each. But this company fell as low as $6.75 earlier this morning, another 52-week (and multi-year) low.

Arcadium Lithium plc (ASX: LTM) is another unfortunate newsmaker today. Arcadium shares are presently nursing a horrid 5.17% loss at $6.60 a share. Earlier today, we saw those shares get down to just $6.51.

That's technically a new 52-week low for Arcadum, but an impotent one, if we consider this company has only been on the ASX board since late December 2023. That's after Arcadium (originally Livent) merged with the old ASX-listed Allkem Ltd.

So it's not a great day to own most ASX 200 lithium stocks it seems.

Why are ASX 200 lithium shares like Core Lithium hitting new lows today?

There hasn't been much news out of Core Lithium stock, or any other lithium company today that might easily explain these fresh new lows. However, this entire sub-sector has been on struggle street for months now. Core Lithium shares themselves peaked way back in November 2022, when the company reached an all-time high of almost $1.90 a share.

But ever since, investors have been losing money. Since that high, the Core Lithium share price has tanked by more than 90%. We see similar moves playing out with other ASX 200 lithium stocks (although Core Lithium is one of the more drastic fallers).

These losses have accelerated over the past few months, thanks to lithium prices themselves falling off a proverbial cliff. This has resulted in funding issues for other lithium producers, mainly Liontown Resources Ltd (ASX: LTR). Last month, Liontown revealed that it has had a loan facility cancelled due to poor cash flow projections.

Core Lithium, along with other lithium shares, now regularly finds itself on the list of the ASX's most short-sold stocks.

As my Fool colleague James reported last week, at least one ASX broker reckons the company has even further to fall too.

So with all of this in mind, it's perhaps not surprising to see Core Lithium, along with other ASX 200 lithium stocks, hit a new 52-week low this Tuesday. Let's see if the company can turn things around over the rest of 2024.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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